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Wednesday, August 19, 2020

BITCOIN CASH AND LITECOIN TRUST FROM GRAYSCALE INVESTMENTS START TRADING

 



    Grayscale Investments' Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG) received DTC eligibility on Monday, which means the shares can start trading publicly. The company's newest fund provides investors with exposure to crypto, bitcoin, cash and litecoin assets, and shares will be traded through the secondary market.


Both LTC and BCH supporters are delighted to hear that the new crypto trust Grayscale meets DTC eligibility on Monday, August 17th. This means that eligible investors can gain access to these two trusts and invest in them like any other type of security.

Basically, DTC eligibility means that the securities, in this case, LTCN and BCHG can be pledged via DTC. It is the largest securities repository in the world managing $ 35 trillion worth of securities.

Investors can now gain exposure to this crypto asset by investing in eligible stocks. Bitcoin Cash Trust will be available for trading on the over-the-counter (OTC) market according to the announcement, and stocks will take advantage of the ticker symbol: BCHG.

Grayscale Eligible Litecoin Investments shares will be available for trading on the OTC market under the symbol: LTCN.

"The Trust is an open trust sponsored by Grayscale and is intended to allow exposure to the price movements of any underlying asset through the investment vehicle, avoiding the challenge of buying, holding and storing Bitcoin Cash or digital Litecoin directly," explained Grayscale.

The Grayscale announcement notes that the trust sees private placements as of March 2018, and shares that are prepared through the placement of each trust are available for sale on the public market. However, Rule 144 of the Securities Act requires a "statutory period of ownership of one year".

As of July 31, 2020, there are 6,028,000 shares of BCHG outstanding and each share represents a holdings of 0.00941311 bitcoin cash, ”Grayscale's announcement on Monday stated. "There are 2,500,800 shares of LTCN outstanding and each share represents an ownership of 0.09413112 litecoin," the press release added.

Grayscale Investments’ announcement on Monday further concludes:


All investors with access to U.S. securities will be able to buy and sell freely-tradable shares of BCHG and LTCN through their investment accounts in the same manner as they would other unregistered securities.

  What do you think about Grayscale’s new litecoin and bitcoin cash investment products? Let us know in the comments section below.

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